AN Israeli firm on Wednesday launched a $100-million loan facility for the construction of domestic agricultural processing facilities as part of the deals signed by President Duterte during his state visit to Israel last year.
James P. Amparo, president and CEO of Yovel East Research and Development Inc. (Yovel East), said they have finalized the loan assistance program for Philippine agriculture almost a year after Duterte’s visit to Israel.
Amparo said the loan, to be funded by Israel-based Mima Tech, will be available for the Department of Agriculture (DA) and local government units.
Amparo’s firm is the Philippine partner of Mima Tech and will serve as a conduit for the credit portfolio.
Under the loan program, the government may access the entirety, or a part of, the $100-million loan to build agricultural processing facilities such as rice mills, Amparo said.
Depending on the size of the loan and negotiations, the maturity of the loan would be about 10 to 15 years with an interest rate of 3 percent to 4 percent, he added.
The facilities will be built by Yovel East, which will also provide technical assistance to farmers and officials who will operate the plant.
This, Amparo pointed out, ensures that the facilities will not become white elephants for lack of technical skills to manage them.
The loan package also includes a market management component, with Mima Tech purchasing the produce of the facilities’ farmer-beneficiaries in order to ensure profit, he added.
“The idea is to engage with the government since the loan facility will be there. We just have to ask the DA what type of facilities they want to put up,” Amparo said in a news briefing on Wednesday.
“This is a holistic approach [in investing in agriculture]. We will put up the processing facility and help them increase their yield technology-wise and improve their crops. We will also give them buying agreements to ensure market,” he added.
Amparo said they are keen on participating in the investment program that new Agriculture Secretary William D. Dar floated recently.
Dar said he wants to replicate Nueva Ecija’s initiatives of investing in their rice own industry by setting up their own rice mills and purchasing their farmers’ palay, as well as selling the rice in the market.
Dar plans to engage with local government units of the top 10 rice-producing provinces to discuss the program, with the DA linking them up with possible credit facility sources.
“Yes, we are very much willing partners with the DA [in this endeavor],” Amparo said.